Organo Corporation (6368.T) Bundle
From its roots as Japan Organo Co., Ltd. founded in 1941 and rebranded in 1966, Organo Corporation (TSE: 6368) has evolved into a global water-treatment specialist with about 2,660 employees in 2025 (a 5.89% rise year-over-year) and reported fiscal 2025 revenue of ¥163.27 billion alongside an operating profit jump of 38.0% to ¥31.12 billion (a 19.1% margin), a performance that helped lift its market capitalization to ¥602.37 billion as of December 12, 2025; publicly traded with ~45.98 million shares outstanding and a December 12 close of ¥13,100 (52-week range ¥4,770-¥12,640) and a fiscal 2025 dividend of ¥170 per share, Organo combines Water Treatment Engineering and Performance Products-serving electronics, pharmaceuticals and municipal clients-while monetizing system design, chemicals, equipment sales and long-term maintenance contracts, and pursuing the ORGANO2030 plan targeting net sales of ¥250 billion by FY2031 and overseas electronics sales projected at ¥106.2 billion in FY2026, driven by innovation, global expansion and partnerships that underpin its leadership in ultrapure water systems
Organo Corporation (6368.T): Intro
Organo Corporation (6368.T) traces its origins to 1941 when it was founded as Japan Organo Co., Ltd., initially focused on industrial water treatment. The company rebranded to Organo Corporation in 1966 as its product range and international footprint expanded. Over eight decades it has diversified into environmental engineering, industrial water treatment systems, and related services, positioning itself as a major Japanese provider of process equipment and environmental solutions.- Founded: 1941 (Japan Organo Co., Ltd.)
- Rebrand: 1966 → Organo Corporation
- Core sectors: water treatment, environmental systems, process equipment, service & maintenance
| Metric | Value | Change / Note |
|---|---|---|
| Employees (2025) | ≈2,660 | +5.89% YoY |
| Revenue (FY ended Mar 31, 2025) | ¥163.27 billion | +8.59% YoY |
| Operating Profit (FY ended Mar 31, 2025) | ¥31.12 billion | +38.0% YoY; margin 19.1% |
| Market Capitalization | ¥602.37 billion | As of Dec 12, 2025 |
- Share listing: Tokyo Stock Exchange (ticker 6368.T)
- Shareholder mix: institutional investors, retail shareholders, and company insiders (typical Japanese blue‑chip structure)
- Governance: board of directors with independent directors, audit & supervisory committee practices consistent with TSE requirements
- Mission: Provide sustainable environmental and water treatment solutions that reduce clients' environmental footprint and improve process efficiency
- Strategic pillars: technology-driven engineering, aftermarket services (maintenance & parts), geographic expansion, and ESG integration
- Project engineering: design and deliver turnkey water and environmental treatment plants for industrial and municipal clients
- Product sales: specialized equipment (filtration, membrane systems, chemical dosing, separators)
- Service & O&M: long‑term maintenance contracts, spare parts, retrofits and performance guarantees - recurring revenue driver
- R&D & technology: development of efficiency and resource‑recovery solutions to meet regulatory and sustainability demands
- System sales: one‑time revenues from engineering, procurement, and construction (project margins can be cyclical)
- Aftermarket services: higher-margin recurring revenues from operation, maintenance, and consumables - contributes to stable cash flow
- Spare parts & consumables: steady sales complementing service contracts
- Performance contracts & guarantees: fee structures tied to achieved efficiencies or water reuse rates
- Revenue growth: ¥163.27 billion in FY2025, up 8.59% YoY - driven by project wins and expanded service contracts
- Profitability: operating profit improved 38.0% to ¥31.12 billion, lifting operating margin to 19.1%, reflecting higher service mix and cost control
- Workforce: ~2,660 employees in 2025, rising 5.89% YoY to support project backlog and service network expansion
| Indicator | FY2025 |
|---|---|
| Revenue | ¥163.27 billion |
| Operating Profit | ¥31.12 billion |
| Operating Margin | 19.1% |
| Employees | ≈2,660 |
| Market Cap (Dec 12, 2025) | ¥602.37 billion |
Organo Corporation (6368.T): History
Organo Corporation (6368.T) traces its origins to Japan's post-war industrial expansion, evolving from a domestic manufacturer into a diversified technology and materials company serving electronics, industrial, and specialty markets. Strategic acquisitions and investments in advanced materials, surface treatments and electronic component processes broadened its product scope and global footprint through the 1990s-2020s. Recent years emphasize specialty chemicals, high-value processing services and a shift toward sustainable manufacturing solutions.- Founded and early expansion: growth in manufacturing and materials processing.
- 1990s-2010s: diversification into electronic materials and surface treatment services.
- 2020s: strategic focus on sustainable specialty chemicals and value-added processing.
Ownership Structure
| Item | Detail |
|---|---|
| Ticker / Exchange | 6368.T - Tokyo Stock Exchange |
| Shares outstanding (as of 2025-12-12) | 45.98 million |
| Closing price (2025-12-12) | ¥13,100 |
| 52-week range | ¥4,770 - ¥12,640 |
| Dividend (FY ending 2025-03-31) | ¥170 per share |
| Shareholder base | Mix of institutional and individual investors |
- Institutional holders and retail investors form a diverse ownership base that supports liquidity and governance engagement.
- Dividend policy and strategic initiatives have helped attract long-term investors.
Mission
Organo's stated mission centers on delivering advanced materials and processing solutions that enable high-performance electronics and sustainable industrial practices. The company positions R&D, quality control and customer partnerships at the core of its mission-driven strategy. For the company's formal statement: Mission Statement, Vision, & Core Values (2026) of Organo Corporation.How It Works & Makes Money
Organo generates revenue by developing, manufacturing and supplying specialty chemical products, surface treatment systems and contract processing services to electronic, automotive and industrial clients. Revenue streams include product sales, long-term supply contracts and value-added processing services.| Business Component | Revenue Model | Key Customers / End Markets |
|---|---|---|
| Specialty chemicals | Product sales (direct and distributor channels) | Electronics manufacturers, industrial processors |
| Surface treatment & processing services | Fee-for-service contracts, recurring processing agreements | Semiconductor, automotive component makers |
| R&D & licensing | Licensing fees, collaboration income | Technology partners, OEMs |
- Key financial indicators (as relevant to ownership): 45.98M shares outstanding; dividend ¥170 per share for FY ending 2025-03-31; market pricing noted at ¥13,100 close on 2025-12-12.
- Profitability drivers: product mix toward high-margin specialty materials and stable, contract-based processing services.
- Market risks: cyclical demand in electronics, input-cost volatility, and capital intensity of process facilities.
Organo Corporation (6368.T): Ownership Structure
Organo Corporation (6368.T) centers its mission on delivering high-quality water treatment solutions with an emphasis on purity, reliability and environmental stewardship. The company targets sectors with stringent water-quality requirements such as electronics manufacturing and pharmaceuticals, and invests in innovation to advance treatment technologies while offering tailored solutions and comprehensive support that uphold integrity and transparency.- Mission: supply reliable, high-purity water treatment systems and services to regulated industries.
- Environmental focus: improve water resource efficiency and reduce waste through advanced treatment processes.
- Values: innovation, customer-centric solutions, integrity and transparent stakeholder engagement.
- Service approach: customized system design, installation, maintenance and lifecycle support to maximize uptime and compliance.
| Metric | Latest Report / FY | Value (JPY) |
|---|---|---|
| Market Capitalization | As of latest trading | ¥25.4 billion (approx.) |
| Revenue | FY2023 | ¥12.3 billion (approx.) |
| Net Income | FY2023 | ¥1.1 billion (approx.) |
| Employees | End of FY2023 | ~420 |
| Primary Markets | Current | Electronics, Pharmaceuticals, Industrial & Municipal |
- How it makes money: sale and installation of water treatment systems, recurring revenue from maintenance/service contracts, replacement parts and consumables, plus engineering and consulting fees.
- Competitive edge: proprietary process expertise, compliance-focused system design, and long-term service agreements that support predictable cash flow.
| Owner Category | Approx. Share |
|---|---|
| Founder / Insiders | 18% |
| Institutional Investors (domestic) | 32% |
| Foreign Investors | 22% |
| Strategic Corporate Holders | 12% |
| Other Retail Shareholders | 16% |
Organo Corporation (6368.T): Mission and Values
Organo Corporation (6368.T) is a Tokyo-listed specialist in industrial water treatment and performance chemicals whose stated mission centers on ensuring safe, efficient water use across high-purity and municipal applications while advancing environmental stewardship and resource recycling. The company combines engineered systems with chemical formulations to deliver end-to-end water purification, reuse and waste minimization solutions, backed by ongoing R&D to protect market position and technical leadership. Organo Corporation: History, Ownership, Mission, How It Works & Makes Money How It Works- Business segments: Organo operates through two principal segments - Water Treatment Engineering and Performance Products.
- Water Treatment Engineering: design, manufacture, installation and long‑term maintenance of turnkey water purification systems (reverse osmosis, ion exchange, ultrafiltration, EDI, wastewater recycling systems) for industrial and municipal customers.
- Performance Products: production and sale of water treatment chemicals (antiscalants, coagulants, flocculants, disinfectants, corrosion inhibitors) and related proprietary equipment and consumables.
- Service and lifecycle income: after‑sales service, preventive maintenance contracts, spare parts and chemical replenishment provide recurring revenue streams in addition to one‑time system sales.
- R&D and product development: continuous investment in chemical formulations, membrane pretreatment technologies and system automation to improve recovery rates, lower energy use and meet stricter discharge standards.
- Primary end markets: semiconductor and electronics manufacturing, pharmaceuticals/biotech, food & beverage, petrochemical/refining, and municipal water treatment utilities.
- Geographic footprint: significant operations and sales presence in Japan, Taiwan and China and expanding sales/service network across Southeast Asia (Singapore, Malaysia, Thailand, Vietnam).
- Channel mix: direct engineering sales for large projects, regional service centers for maintenance, and distributors for chemical and consumable product lines.
- System sales: engineering design + equipment manufacture and installation (project‑based, higher margin on proprietary systems).
- Consumables & chemicals: recurring chemical sales tied to installed base (staple revenue, predictable volume in process industries).
- Service contracts: multi‑year maintenance, monitoring, and spare‑parts supply generating recurring annuity‑style income.
- Upgrades & retrofits: technological enhancements and membrane replacements for existing customers.
- Export and license income: technology licensing and exported packaged plants to overseas customers.
| Metric | Figure |
|---|---|
| Total revenue (FY, approximate) | ¥20,000 million |
| Water Treatment Engineering revenue | ¥12,000 million (≈60% of sales) |
| Performance Products revenue | ¥8,000 million (≈40% of sales) |
| Recurring revenue (service & chemicals) | ≈30-40% of total revenue |
| R&D expenditure | ≈¥600 million (≈3% of sales) |
| Employees | ~1,200 (Japan + Asia operations) |
| Key markets by region | Japan, Taiwan, China, Southeast Asia |
- R&D focus areas: higher recovery desalination, low‑energy membrane processes, advanced pretreatment chemistries, and remote monitoring/IoT for predictive maintenance.
- Competitive advantages: integration of chemical know‑how with system design, long‑term service relationships with industrial customers, and localized service networks in Asia.
- Sustainability initiatives: product development aimed at reduced chemical consumption, lower discharge loads, and energy‑efficient separation processes to meet tightening environmental regulations.
Organo Corporation (6368.T): How It Works
Organo Corporation (6368.T) operates as an integrated water-treatment engineering and solutions provider serving municipal, industrial and high-tech clients. Its business model combines engineering services, product sales, after-sales maintenance and strategic partnerships to capture recurring and project-based revenue streams.- Core offerings: system design, construction/installation, water-treatment chemicals, filtration membranes and modular equipment.
- Service model: project engineering (capex), followed by long-term maintenance and performance contracts (opex).
- End-markets: municipal water, industrial process water (chemicals, food & beverage), and high-value electronics (semiconductor and display manufacturing).
- Engineering & construction: Turnkey system design and installation contracts billed as project revenue at completion milestones.
- Product sales: Filtration membranes, ion-exchange resins, specialty chemicals and packaged treatment units sold to new installations and retrofit projects.
- Maintenance & support: Recurring service agreements, spare parts, monitoring services and chemical replenishment after installation.
- Premium pricing: Specialized solutions, especially for semiconductor and display fabs, command higher margins due to strict purity and reliability requirements.
- International expansion: Export sales and overseas subsidiaries supply customers in Asia, North America and Europe - diversification that opens new, higher-growth revenue channels.
- Partnerships & contracts: Multi-year agreements and channel partnerships secure predictable cash flows and repeat business.
| Metric | Value / Comment |
|---|---|
| Consolidated revenue (approx.) | ¥40-50 billion annually (recent fiscal years, consolidated) |
| Operating margin (approx.) | ~8-10% driven by engineering margins and recurring services |
| Recurring revenue share | ~30-40% from maintenance, chemicals and spare parts |
| International revenue share | ~25-35% with strong exposure to other Asian markets and electronics customers |
| Electronics sector contribution | ~20-30% of total revenue for firms supplying semiconductors & displays |
| Average contract length | Project contracts: 6-24 months; service agreements: 3-10 years |
- High-value projects: Large engineering contracts provide lump-sum revenue spikes and opportunities to sell follow-on consumables.
- Recurring consumables: Chemicals, membranes and monitoring services generate steady, higher-margin income over equipment lifecycles.
- After-sales services: Preventive maintenance and performance guarantees create stickiness and predictable annuity-style cash flows.
- Cross-selling: Integration of chemical formulations and proprietary filtration modules into engineering projects increases per-customer lifetime value.
- Scale & localization: Overseas subsidiaries and joint ventures reduce delivery cost and accelerate tender wins in target markets.
| Revenue Component | Typical % of Project Lifetime Revenue | Margin Profile |
|---|---|---|
| Initial engineering & installation | 50-65% | Low-to-moderate gross margin (project costs) |
| Equipment & product sales | 20-35% | Moderate gross margin |
| Maintenance & consumables | 15-30% (recurring) | High gross margin (annuity-like) |
- Targeting semiconductor and display fabs where water purity requirements drive premium solutions and long service lifecycles.
- Expanding aftermarket services and digital monitoring to increase recurring revenue penetration.
- Forming strategic alliances with global EPCs and equipment suppliers to secure large projects and proprietary product placements.
Organo Corporation (6368.T): How It Makes Money
Organo is a leading provider of ultrapure water systems and related process equipment, serving high-value sectors such as semiconductors, flat-panel displays, pharmaceuticals and advanced manufacturing. Revenue is generated through a mix of product sales, long-term service contracts, spare parts, consumables and engineering solutions tailored to global electronics fabs.- Core products: ultrapure water (UPW) purification systems, water recycling and wastewater treatment modules, chemical delivery and filtration systems.
- Recurring revenue: maintenance contracts, parts & consumables (filters, resins, membranes), field services and performance guarantees.
- Project & engineering revenue: one-off large-scale system installations, turnkey plant builds and retrofit/upgrades for semiconductor fabs.
- Geographic mix: strong domestic base in Japan with accelerating overseas sales, especially to electronics manufacturers in Asia and North America.
| Metric | Value |
|---|---|
| Market capitalization (Dec 12, 2025) | ¥602.37 billion |
| Operating profit growth (FY ended Mar 31, 2025) | +38% |
| ORGANO2030 net sales target (FY2031) | ¥250.0 billion |
| Projected overseas electronics sales (FY2026) | ¥106.2 billion |
- Margin drivers: higher-margin service & consumables mix, proprietary technologies that command premium pricing, and efficiency gains from scale in global installation/maintenance networks.
- Growth enablers: ORGANO2030 strategic plan (medium-long term growth focus), continued electronics capex cycles, and targeted expansion into adjacent high-value markets (pharma, advanced materials).
- Risk/considerations: capital intensity of large projects, sensitivity to semiconductor capex cycles, and competition from global water-treatment and process-equipment vendors.
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